The low milk price in 2013 was not the ideal time for a multimillion dollar dairy conversion let alone one writing its own blueprint. But, as Neal Wallace reports, North Otago’s John and Ruby Foley had a vision and a goal and they were determined to see it through.

There was no single dairy farm blueprint for John and Ruby Foley to follow.

They had just a wish list underpinned by a philosophy that the value of the business had to be set by the enterprise not the cost of land.

In the back of the minds of the North Otago dairy farmers was the increased difficulty for young people to enter the industry because of the cost of land. . .

Higher pay rates appear to have stemmed the flow of shearers and shedhands heading offshore.

Shearing Contractors Association president Mark Barrowcliffe said a wage increase of up to 25% has been welcomed by woolhandlers and South Island contractors starting pre-lamb shearing have been told by staff the better wages are an attraction to stay here instead of heading overseas.

“We have just made New Zealand an attractive proposition for our transient staff,” he said. . .

A West Coast beekeeper has been denied Government funding to breed bees he says are resistant to the varroa mite.

Gary Jeffery, a beekeeper in Westport, said he wanted to continue breeding mite resistant bees from his stock, but that his application for help from the Government’s Provincial Growth Fund had been denied.

Jeffery has previously received $25,000 from Development West Coast and has had the backing of private investors, but was running out of money to feed his bees before the end of winter.

In a letter declining his pitch for $150,000 to develop a breeding programme, the provincial development unit said there was no evidence as to how Jeffery’s proposal would boost the West Coast economy . .

Farmers are reeling from yet another blow, after a severe localised hail storm tore its way through the Mayfield area of Mid-Canterbury.

“As the year draws to a close and we are fast approaching harvesting season, Mid-Canterbury farmers are facing a financial nightmare after the hail storm yesterday,” says David Clark, Mid-Canterbury Grain and Seed Chairperson.

“This has been a mongrel year for farmers in Mid-Canterbury; we have gone from snow to wind storms to a very dry spring to now this. It is a horrible way to finish off the year, with radish and carrot crops shredded and wheat and barley crops having the stuffing knocked out of them. . .

Fonterra dropped a bombshell last week when it announced its latest consideration on its farmgate milk price.

For farmer shareholders in New Zealand’s largest company, it had been shaping up to be a particularly merry Christmas, with economists suggesting the milk price could be lifted as much as 40c.

Elevated prices, which have defied predictions and remained at very high levels – the GlobalDairyTrade price index was just 7% below its April high and about 50% higher than a year ago – raised expectations for the forecast to rise. . .

British shoppers have noticed that their favourite Anchor butter tastes different – with the explanation being it’s no longer from New Zealand.

In Britain, the famous Kiwi brand is used by European dairy company Arla. Until recently, Arla had shipped over New Zealand butter made by Fonterra, but has now switched production to its British facilities.

The Arla logo has been added to block butter packs, but the company has faced a number of complaints from disgruntled customers who were unaware of the change. . .

On 21 November the Parliamentary Commissioner for the Environment, Jan Wright, released her second report on water quality. It warned that business-as-usual dairy expansion by 2020 would leave our lakes and rivers more degraded than they are now, even with improved mitigation. I’d now like to re-cap what the report concluded, how it got there, and how it was received.

The report

The purpose of the report was to illustrate how land use change could affect future nutrient runoff – nitrogen and phosphorus – based on a simple, business-as-usual scenario for 2020.

Motu used a combined economics-land use model called LURNZ to project what land use changes are likely by 2020, driven by commodity process and knowledge of land use practices and landscape characteristics. Sheep and beef farming were expected to give way to dairying, forestry, and even reversion to shrubland. . .

Federated Farmers looks forward to working with the Boards of the cooperatively owned Silver Fern Farms and Alliance Group following their recent Director elections.

“Federated Farmers congratulates the new directors elected to our two largest cooperatives, Don Morrison at Alliance Group as well as Richard Young and Dan Jex-Blake at Silver Fern Farms,” says Jeanette Maxwell, Federated Farmers Meat & Fibre chairperson.

“We also congratulate Alliance Group chairman Murray Taggart on his re-election.

“Federated Farmers Meat & Fibre wishes to formally thank Alliance Group’s Owen Poole and Jason Miller as well as Silver Fern Farms’ David Shaw for their service to shareholders. . .

Shifting 1500 weaned lambs is not easy.They may not be to smart but there's lots of collective cunning there pic.twitter.com/p9iaui1Qi1

In the seven months since MIE’s first farmer meeting in Gore, there have been more meetings, discussions with meat companies and, most recently, nominations for the boards of Silver Fern Farms and Alliance Group. Meat companies have tried and failed to find an acceptable solution to the problems raised by MIE.

Previous MIE executive members Richard Young and Dan Jex-Blake are standing for election to Silver Fern Farms’ board. Don Morrison has been nominated for the Alliance board as a farmer director, while a shareholder, Mark Paterson, has proposed a resolution to nominate Fonterra director John Monaghan for the independent directorship vacated by Owen Poole. This will be voted on by those members present at the AGM, but the result of that vote is not binding on the board.

Alliance Group’s AGM takes place on the 13th December and SFF’s on 18th. Therefore we will know before Christmas how many of these candidates have actually made it onto one or other of the cooperative’s boards. . .

The Labour Inspectorate is extending its dairy farm visits to regions across New Zealand to check compliance with minimum employment rights.

Labour Inspectors began visiting dairy farms in Southland in August, with the work now being replicated in the Waikato, Hawkes Bay and Taranaki.

The visits are part of a long-term operation to identify breaches of employment law, with particular focus on a practice called seasonal averaging and the failure to keep accurate time and wage records. . .

The opinions below are my own, and not necessarily those of the University of Otago, my employer.

You may be aware that AgResearch has decided to move its genetics/genomics team from Invermay near Dunedin, to Lincoln. This move has excited a great deal of attention in the Otago press, and some consternation around here. Genetics Otago has been drawn into this as a centre of research excellence and hub for genetics and genomics that AgResearch is linked into, that they will lose the benefit of if they move. This has led to some unfortunate exchanges in the media, so I thought I would write something from my point of view.

AgResearch has had a long-term and excellent genetic/ genomics group at Invermay. Many of that group are members of Genetics Otago. Genetics Otago has over 200 members across the University of Otago, AgResearch, AbacusBio, and others (both companies and individuals) across Otago. AgResearch is a small, but important, part of that collaboration. . .

Farmers and lifestylers are being encouraged to get their cattle and deer tested for bovine tuberculosis (TB) as soon as they have been registered with the TBfree New Zealand programme.

To ensure the programme’s testing requirements are as accurate as possible for all animals, some changes have been made to the TB status of herds.

The changes directly affect newly-registered breeding herds and non-breeding (dry stock) herds. All new herds now start off on a Suspended (S) herd TB status until they have passed their first whole herd test. . .

The popularity of Manuka honey has been confirmed in a recent national survey, which places it above Clover and other floral varieties. In the New Zealand-wide survey launched by Airborne Honey this month to celebrate the country’s first National Honey Week, 40% of Kiwis named Manuka as their favourite and 29% choose Clover. A number of other floral honeys featured further down the scale, including Vipers Bugloss (3%) and Rewarewa (2.26%).

The survey also revealed that the favoured way to eat honey in New Zealand is on toast (57%), followed by a sweetener in hot drinks (9%) and straight off the spoon for medicinal purposes (9%). Most New Zealanders eat honey once or twice a week with only 2% never eating honey at all. . . .

A New Zealand cellar door has won a 2014 International Best of Wine Tourism award with the Brancott Estate Heritage Centre in Marlborough being the only New Zealand cellar door to win this prestigious award.

The Brancott Estate Heritage Centre, home of Brancott Estate wines, is located at Brancott Vineyard, the site of the original Sauvignon Blanc plantings in Marlborough.

The Great Wine Capitals Global Network recently announced the winners of the 2014 International Best of Wine Tourism awards at a ceremony held at the Culinary Institute of America’s Greystone campus in St. Helena, California. The nine international winners were chosen from 53 local ‘Best Of‘ winners from nine Great Wine Capitals. In all, 350 applications were received this year. . .

With concern growing in China about the health risks from air pollution, a Kiwi start-up is expecting keen interest in its wool-based filtration products when it exhibits at the China High-Tech Fair.

Auckland-based Texus Fibre specialises in next generation materials which harness wool’s outstanding natural functionality for use in a range of products. An early application for its technology is personal particulate respirators and filters for use in industry.

“Around the world, and particularly in China, people are increasingly worried about the increase in the quantity and toxicity of dust,” says Texus Fibre founder and director Nick Davenport. “The problem has grown to the point that the World Health Organisation recently classified outdoor air pollution as carcinogenic to humans. . .

Which is more important for agricultural commodity investors – data on US exports, or on domestic demand?

On the evidence of Friday’s performance in soybeans, trade statistics proved the more influential, hands down.

The National Oilseed Processors Association came in with some strong data on the US soybean crush in October, pegging it 157.1m bushels – well above market expectations of a 154.3m-bushel result. As an extra fillip, soyoil stocks were lower than expected too, at 1.36bn pounds, compared with a forecast 1.49bn pounds. . .

I am writing this from Vietnam as I look at how they farm. For a communist country it seems pretty entrepreneurial but that’s come out of reality versus theory. After reunification, in 1976, the purists collectivised rice production and collapsed output. One decade later, Vietnam allowed its farmers to grow and sell their own rice, albeit, within boundaries. Today however, Vietnam has become the World’s No. 1 rice exporter.

When it comes to rice production water is critical as it is back in New Zealand.

In our many discussions about water quality we often overlook the fact that livestock need good quality drinking water too. Cows are mammals just like humans so good water is in farming’s own self-interest. Given the marvels of modern communication, I managed to catch One News’ coverage of the proposed amendments to the National Policy Statement for Freshwater Management.

Out here on the area farms it has been another case of “one of those years”.

Crops were hard to get in, with the cold and wet weather playing havoc with timing for many.

Early planted corn was stressed by too much cold and rain while some later planted fields struggled to mature before the first frost in early September.

Some crop land displayed its low spots with either stunted, yellowed growth or nothing at all.

The soy planting, done after the corn, seemed to go better and combining is now in full swing with many farmers extremely pleased with the yields. The corn will no doubt be a different story for some.

The hay harvest, for the third year in a row, proved to be difficult, especially for those who make the small square bales. The June rains didn’t leave enough good weather in a row to cut, dry and bale the 10,000 or so first cut bales we make yearly, so the harvest dragged on through July and well into August. . . .

Federated Farmers is saluting the success of arable and sheep farmer, Ricky May, who made the history books yesterday in the Christchurch Casino New Zealand Trotting Cup.

“Becoming the most successful driver in 110 years, of the great race, takes a lot of talent and we are thrilled for Ricky who is a valued member of the Federation,” says Bruce Wills, Federated Farmers President.

“It is humbling to see that even with the nation celebrating his success, when we spoke to him he was back out in the paddock spraying peas. . .

DairyNZ is boosting dairy farmers’ investment in the environmental area by 61 percent in this financial year, from $6.7 million to $11 million as part of its efforts to meet its commitments under the new Sustainable Dairying: Water Accord and the National Policy Statement on Freshwater Management.

“Biosecurity is also a big investment at $16 million but even this funding has environmental benefits as we are the largest non-government funder of the TBfree programme that focuses a lot on possum control with clear biodiversity benefits,” he says. . .

Finding innovative ways to utilise waste, a greater focus on consumer driven research, and increased Government investment are just some of the challenges facing the food industry in New Zealand according to Lincoln University’s Professor of Food Science, Charles Brennan .

Professor Brennan was speaking as part of the Foods for Now and the Future Forum held at Lincoln University last week. The forum was arranged by the New Zealand Institute of Agricultural and Horticultural Science and the New Zealand Institute of Food Science and Technology.

On the subject of wastage in food production and consumption he noted that some 50% of packaged salad greens and 40% of bread and cereals may be discarded in some countries around the world. However, utilising smarter production methods and taking a more innovative approach when it comes to wastage could mean up to one billion people could be fed worldwide. . .

Fonterra has today further strengthened its position in the Australian dairy industry by acquiring the assets of Tasmanian yoghurt business, Tamar Valley Dairy.

Under the agreement, Fonterra will acquire the processing equipment, the related services, and intellectual property and trademark for the Tamar Valley Dairy brand. The acquisition is effective towards the end of November (subject to completion of the sale), with the exact date to be confirmed.

“Fonterra is a long-standing partner of Tamar Valley Dairy, and has supported and worked closely with the administrators of the family-owned business during what has recently been a difficult period for the Tasmanian business and its founders,” said Judith Swales, Managing Director, Fonterra Australia. . .

A second huge Australian cattle operation has had trouble selling, with the North Australian Pastoral Company being withdrawn from the market, amid tough industry conditions and a growing debate over land ownership.

North Australian Pastoral Company’s ruling Foster family has taken down the for sale sign after six months of marketing the 58,000-square kilometre (14.3m acre) property – an area nearly twice the size of Belgium and nearly as big as the US state of West Virginia – failed to attract an “acceptable proposal”.

Besides the Foster family’s 61% stake in Napco, a 34% stake held by London-listed plantations group MP Evans was also up for sale. . .

Te Ohu Kaimoana (the Maori Fisheries Trust) has appointed three new directors to the board of Aotearoa Fisheries Limited.

Mr Anthony Hannon, a merchant banker with extensive experience in tax consulting, private equity and asset management, and Ms Liz Ward (Ngāti Porou), a former Chief Executive of Deep Cove Fisheries and Wellington’s CentrePort, have been appointed for a term of three-years. Mr Alan Gourdie, an Auckland-based consultant with international management and marketing experience as a chief executive and director, has been appointed for a two-year term from 1 November. . .

The benefits North Otago communities continue to receive from local irrigation schemes have been highlighted to two Government Ministers.

The Waitaki Irrigators Collective (WIC) yesterday invited Primary Industries Minister Nathan Guy and Associate Primary Industries Minister Jo Goodhew to tour irrigation schemes across North Otago, and Mr Guy said the tour, which took in farms and irrigation schemes between Weston and Glenavy, had reinforced the ”huge benefits” of irrigation to North Otago. . . .

Another benefit to the area would be if New Zealand’s sharpest town, #gigatownoamaru becomes the Southern Hemisphere’s first #gigatown.

When Eoin Garden retires as Silver Fern Farms’ chairman at the AGM in December, both cooperatives will have had a change at the top within three months of each other. So the big question is whether this will make any difference to the way they operate: will there be a significant change of culture and leadership from the top or will it be much the same as before?

The Meat Industry Excellence Group is obviously hopeful of getting its preferred directors elected to the SFF board with Richard Young, MIE’s chairman until recently, and Poverty Bay farmer Dan Jex-Blake resigning from MIE to stand for election in their respective wards.

There is also one MIE aligned candidate standing for the Alliance board, long time supplier Don Morrison, although Fonterra director John Monaghan was keen to stand, but was rejected by the Alliance board under the terms of the company’s constitution. MIE chairman John McCarthy says “this is a real slap in the face for Alliance shareholders” who want to see change and in his opinion “is typical of what’s wrong with the meat industry.” . . .

Primary Industries Minister Nathan Guy is welcoming new investment of $750,000 into irrigation projects in Central Otago, and $100,000 in the Rangitikei, coming from the Government’s Irrigation Acceleration Fund (IAF).

“There is major unrealised potential across the country for further irrigation development, and these two projects will help unlock that.

“This is about creating jobs and exports, particularly in provincial New Zealand. It will play a major part in realising the Government’s goal of doubling primary sector exports by 2025.”

The Central Otago funding will go towards backing the next stage of the Manuherikia Catchment Strategic Water Study. . .

Plant & Food Research’s Dr. Nigel Perry has been awarded the 2013 New Zealand Institute of Chemistry Prize for Industrial and Applied Chemistry. Dr Perry was recognised for his focus on the discovery and development of biologically active natural products.

With his colleagues in Plant & Food Research and the Chemistry Dept of the University of Otago, he has combined fundamental chemistry knowledge with a drive to establish practical applications. Nigel works with medical and agricultural researchers, Māori groups, and New Zealand and international companies.

He is an inventor on six patents, including one on an insect attractant now in commercial use around the world. Much of this work is documented in confidential technical reports to clients, but he has also published many papers on applied chemistry, on three main themes: . . .

Plant & Food Research has received funding for two projects in the latest Marsden fund which will study how plants grow and adapt, fundamental science that will ultimately inform future crop breeding and growing practices.

One of the projects will investigate how ancient plant ancestors may have adapted to an environment with high UV radiation, providing better understanding of how plants may respond to future climate change.

“The emergence of plants onto land was one of Earth’s major evolutionary events, but at that time the environment had a number of challenges, including high levels of damaging UV radiation,” says Dr Kevin Davies. “Our research will look at liverworts, the closest living relative of the first land plants, and study how these plants adapt the production of pigment molecules to counteract the effects of UV. This will, in turn, provide some understanding of how plants may adapt and respond to shifts in environmental conditions as a result of predicted global climate change.” . . .

A partnership between DOC, the Queenstown Lakes District Council, LINZ and the local community aims to clear thousands of hectares of wilding pines in the Wakatipu Basin over the next five years, Conservation Minister Dr Nick Smith says.

“Wilding pines are a significant risk to the natural ecology of the Wakatipu Basin. This partnership is about stepping up the efforts to control these tree weeds and protect the landscapes that make Queenstown such an iconic visitor destination,” Dr Smith told a meeting of the Wakatipu Wilding Conifer Control Group (WCG) in Queenstown this evening.

“This project illustrates the benefits of DOC’s new focus on partnering with others to deliver conservation gains. These tree weeds are as much of a problem on private and council land as they are on public conservation land. It makes sense that we have a co-ordinated effort to control their spread, maximise the use of new technology, and work together to roll back the infestation,” he says. . .